Year-end Tax Checklist
As 2024 comes to a close, now is the perfect time to take stock of your finances and ensure you’re ready for the upcoming tax season. By tackling a few key tasks before December 31, you can set yourself up for a smoother, stress-free filing experience in the New Year.
Here’s your step-by-step guide to wrapping up the year with a complete and organized tax checklist.
If you’ve been generous this year, don’t forget to document your charitable contributions. To claim a deduction, you’ll need:
• Receipts or acknowledgments for monetary donations.
• Records of in-kind donations, such as clothing or goods.
• The organization’s tax-exempt status (check that it’s a qualified 501(c)(3) charity).
Pro Tip: Donations made by December 31 count toward your 2024 tax return, even if you wait until the New Year to file.
Ensure you have all your income documentation in order, including:
• W-2s for salaried work.
• 1099s for freelance or contract income.
• Investment income statements.
Missing something? Now is the time to request duplicates or corrections before the tax season rush begins.
Review your records for deductible expenses that could reduce your taxable income. Common items include:
• Medical bills exceeding 7.5% of your adjusted gross income (AGI).
• Childcare expenses, if eligible for the Child and Dependent Care Credit.
• Education costs, which might qualify for credits like the Lifetime Learning Credit.
Keeping these receipts organized will make your filing process much easier.
If you haven’t hit the contribution limit for your 401(k) or IRA, now’s your chance! Contributions made by December 31 can reduce your taxable income and set you up for long-term savings.
For 2024, the maximum contribution limits are:
• $22,500 for 401(k) plans ($30,000 if you’re 50 or older).
• $6,500 for IRAs ($7,500 if you’re 50 or older).
If you’re self-employed, review your estimated tax payments for the year. The Q4 payment deadline is January 15, but calculating your liability now can help you avoid surprises.
If you’ve made significant home improvements or upgrades, document them with receipts and photos. These could impact your taxes if you sell your home in the future or qualify for energy-efficient tax credits.
Staying organized now can save you time, money, and stress when tax season begins. At Essential Business Service, we make filing as simple and efficient as possible.